Item 1.01 Entry into Material Definitive Agreement.

On December 31, 2019, Apex Global Brands Inc. (the "Company") entered into a Subordinated Note in the amount of $275,000 as partial consideration for the termination of the Company's lease for its office building in Amsterdam. The lease terminated as of December 31, 2019 rather than continue through December 2026, which reduced the Company's lease obligation by $2.4 million. As compensation for early termination of the lease, the Company agreed to pay two payments aggregating $0.6 million and to enter into the Subordinated Note

The Subordinated Note bears interest based on LIBOR plus an applicable margin ranging from 8.75% to 8.25% payable quarterly in cash. The note matures on November 2, 2021. Periodic principal repayments are not required.

The description of the Subordinated Note set forth in this Current Report on Form 8-K is intended to be a summary and does not purport to be complete. As a result, such description is subject to, and qualified in its entirety by reference to, the applicable document filed as an exhibit to this Current Report on Form 8-K.

Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an

Off-Balance Sheet Arrangement of a Registrant.

Reference is made to the disclosure regarding the Subordinated Note under Item 1.01 above, which is incorporate herein by this reference.

Item 9.01 Financial Statements and Exhibits.




(d) Exhibits.

Exhibit

Number Description




10.1   Subordinated Note of Apex Global Brands Inc. dated December 31, 2019.


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